If X and Y are random variables, what is the meaning of E(XY) ?

Daniel Paul

Daniel Paul

Answered question

2022-09-11

If X and Y are random variables, what is the meaning of E(XY) ?

Answer & Explanation

Andrejkoxg

Andrejkoxg

Beginner2022-09-12Added 20 answers

Suppose that X and Y are two random variables. The expected value of the product XY is, roughly speaking, a measure of linear connection between these two variables.
If E(XY) gets higher and higher, the linear connection between X and Y becomes more positive and significant.
If E(XY) is equal to E(X)E(Y), we say that X and Y are uncorrelated, which means that there is no linear connection between them.
Finally, if E(XY) gets lower and lower, the linear connection between X and Y becomes more negative, but significant.

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